Economic Duress

Question 1

Economic duress

Answer 1

Entering a contract due to financial pressure
Goes beyond usual rough and tumble of business dealings

Question 2

Case for property not duress

Answer 2

Skeate v Beale

Question 3

Case for economic duress

Answer 3

Atlas express v Kafco

Question 4

Test for economic duress

Answer 4

1. Did pressure force you into contract or leave a lack of practical choice
2. Pressure must be illegitimate
3. Illegitimate pressure is a significant cause of making the contract

Question 5

Force/ lack of practical choice

Answer 5

Has to be evidence there was no choice but to agree

Question 6

Case for force/ lack of choice

Answer 6

Universe tankships v ITW

Question 7

Pressure must be illegitimate

Answer 7

Factors set out in Pao On v Lau Yiu Long
- did person claiming duress protest
- another reasonable action available
- independently advised before action
- steps to avoid thing

Question 8

Lawful action threatened case

Answer 8

CTN cash and carry v Gallagher

Question 9

Illegitimate pressure is a significant cause

Answer 9

C would not have entered the contract if it was not for the pressure placed upon them by D
Question of fact depends on circumstances of case

Question 10

Illegitimate pressure case

Answer 10

Progress Bulk V Tube City

Question 11

Right to claim may be lost due to lapse of time

Answer 11

Atlantic Baron

Question 12

Remedies

Answer 12

Restitution of property or money